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Les diagrammes suivants illustrent la m6thode. 1 2 3 1 2 3 4 5 6 1 4' ' i ~ ''I S' 1 3% ST"^ oj rrT, Pi THUNDER BAY P iLVER A/Lining Po/vi PANY. DI RECTORS: SIR HUGH ALLAN President. THOMAS REYxVOLDS, Esq. . . Vice-President. i. GEORGE STEPHEN, Esq. Hon. D. A. SMITH. JAMES ROSE, Esq. G. A. DRUMMOND, Esq. JOHN McINTYRE, Esq. C. W. BLACK Secretary-Treasurer. Report by Alexander Stewart, Esq. MADE ON 23rd NOVEMBER, 1874. Montreal ; srAkRE&CO.. PRTNTERS, S4Sr. FRANCOIS XAVIER STREET. 1874 If y TT< / .-smm THUNDER BAY ^ iLYER A/Lining PoyM PANY. • •• DIRECTORS: SIR HUGH ALLAN" I'hesident. TPIOMAS REYNOLDS, Esq. . . Vice-President. GEORGE STEPHEN", Esq. Hon. D. A. SMITH. JAMES ROSE, Esq. G. A. DRUMMOND, Esq. JOHN McINTYRE, Esq. C. W. BLACK Secbetary-Treasurer. Report by Alexander Stewart, Esq. MADE ON 23rd NOVEMBER, 1874. Jttontreal ; J. STARKE & CO., PRINTERS, 54 ST. FRANCOIS XAVIER STREET. 1874. REPORT. To the President and Gentlemen of the Board of Directors of the Thimder Bay Silver Mining Company, Gentlemen, According to instructions received from you under date 8th October ultimo, to proceed to Thunder Bay, for the purpose of examining your property, and reporting on it, I herewith submit the following statement : — I arrived at Thunder Bay nine days after leaving Mont- real — a week being lost, by my missing the steamer. Having arrived, I immediately proceeded to my appointed work, and I must confess things looked somewhat disheart- ening at the outstart. There seemed to me no little evidence of ignorance in the management. It is not in the history of mining, that silver or gold is ever found distributed evenly throughout the vein. I have always found that ore lies in deposits or pockets, and this is uniformly the case in nature. My first examination was of the " dump " of the waste that has been taken from the various shafts and tunnels. In this examination, I was surprised that no evidence appeared of the mineral, as I had been informed, that what work had been done, in the sinking of " A, B and C ' shafts, had been over and in the ledge. This statement is not confirmed by the " Waste." I felt lost, for the reason, that I could not examine the shafts to the bottom. I commenced with Adit ■^fo. 1, west of " A " skift 35 feet. In entering this tunnel, I saw a ledge of quartz overhead in the roof. Proceeding to the end of the tunnel, I found they had run a level so as to connect the shaft and, at the same time, to stope the ore on the vein as far as the surface. Through this Adit, the absence of the necessary material stop- ped the work. Here, they seemed to be at a loss, as I was myself, on account of the timbering in this shaft which cov- ered tlie vein. I went to the surface, and cleared off the ground from wall to wall, and then I found the secret of tha whole trouble. The vein split about twenty feet still further west of the " Adit." The rock between tlie north wall and the " horse," I found to be barren ; and between the south wall and the " horse " to contain mineral. It is necessary to understand that the word " horse " is a mining phrase purely, and that it means the presence of something that is foreign to what properly belongs to the vein. Sometimes it is country rock, and sometimes vein matter. When it divides the vein, the pay will follow, either on the one side or the other. This shaft (A) cuts the vein about 30 feet, from the sur- face of the ground, into the north wall, following it 60 feet, or, in other words, until the miners were disgusted. Here are 60 feet of shaft, 35 of tunnel, and 25 feet of level tunnel, a com- plete loss of 120 feet. East of this shaft, some little work has been done on the surface, still hanging to the north wall. Next, we come to " B " shaft. Between " A " and " B," the " horse " seems to have disappeared, as is generally the case, sooner or later. From " B " east, considerable work has been done on the surface, as there are several piles of rock lying about — I suppose about 40 tons. A description of this shaft and " C," would be but a repetition of the " A " shaft work. There being a ladder, I descended to the water level, something like 24 feet. Here, I found where they had left the vein, and gone down into the north wall of the mine. I also found that they had cut the vein, and were constantly work- ing in the country rock or north wall. A cross cut was driven north 80 feet, and another south 20 feet. The one running south cut the vein, until the whole tunnel was in quartz. %j tu There are two conjectures that can be made ; the one, that the ledge dips to the south, the other, that it has broken over, and assumed a vertical position, at a greater depth. If this latter be the case, it is the more favourable position, for tlie work, that has already been done, may be made avail- al)le, and what then simply remains to be done, is to follow the vein from the bottom of tlie shaft, or go down from the surface. Wiicther the vein dips to the north or the south, you cannot be mistaken in prosecuting the work. In a prospecting point of view, as little is known about the ledge, as when the w-ork commenced. My belief is that you have the great ledge of the district, and from the money and ore that have passed through your hands, not to take in account what has gone in other directions, I would say, by all means work it ; it is well worthy of an outlay. I say this after ascer- taining the returns from enquiries from men who have worked in the mine, and also from surface indications, which lead me to believe that, by deep sinking, and a thorough opening of the mine, there will be exposed bodies of ore, that will produce far larger results than may now be anticipated. From my exper- ience in mines and in silver, there are but few instances of silver ledges, found in true fissures, giving out. When this is supposed to occur, the fissure is no true one, it probably being nothing but a base metal deposit, lying at a greater or less depth. When silver is found in the quartz, and in its different stages, it is generally permanent. This lode is without doubt a true fissure vein, displaying every evidence of its genuine worth, as I walked and traced it all ways for about three miles. With all this before me, I cannot but come to the con- clusion, that this is one of the best prospects in the country. From careful examination, I do not hesitate to say that the " Shuniah " and this are one and the same lode. They both run in nearly the same direction, and are both held in the same formation. Permit me to draw your attention to a vital fact regarding mines, viz. : the manner in which they are plundered. Select- ed ore is sent for reduction to England and the United States, and low grade is dumped for future use. If specimen ore gives out, there is a cry at once that the mine is not paying ; — thus entailing a bad effect on Stock- holders, as they expect the same result at all times, and no mine will ever yield in this uniform way. I have not the least doubt that, after sinking 100 feet, and driving the first level tunnel, a mill could be kept in operation ; and that, after the shaft had reached the 500 feet level, 50 stamps would be insufficient to work the ore pro- duced. A ton of rock should never be sent from the dump, unless to your own reduction works, and that on the ground. You have now run tunnels and sunk shafts amounting to 350 feet in distance. If that work had been in the right direction, you would have been down three times that distance to-day, aud the property in full operation. One evil of former days — the representation of Stock companies by incompetent superintendents — seems to be fast vanishing. So far as I know, the affairs of mining com- panies, where the business is carried on extensively, are in the hands of earnest and practical men. A serious matter and one worthy of attention is, that, in mining, the production of ore is limited to the condition of the mine, and cannot be doubled at a given signal. A permanent increase in production can only be effected by a systematic opening of the mine and of stoping ground, which affords a reserve. There is no lack of good mines in this District, as I think it is in the heart of the Great Silver Belt, but in my opiuion, a radical change will have to take place in working for silver, before much will be done to increase the bullion yield. The many advantages, that belong to the estate, are unrivalled. Water, fuel, and other facilities for working ore, — land sufficient to produce wheat, hay, grain, vegetables, &c., that may be required on the work, — a good road from Prince Arthur's landing to Black Bay, cutting the estate in two, and within three quarters of a mile from the mine, and about the same distance from the mill — all these things go a long way in reducing the expense in working property of this character. Every cord of wood used, is clearing so much land, that can be made available for agricultural purposes, or affording room for dump, yards, &c., enabling one to avoid crowding on one's neighbours, or receiving annoyance from them— an evil which none, but those who have experienced it, can understand. What will be required for the mine, in the way of machinery, are hoisting works, stationary engine, and boiler, reel, ropes, buckets, windlass tubs, safety catches, bell, &c. I have prepared a list of what things are on hand, so that there will be no difficulty in filling up what is requisite for a commencement of work. The manager's house is still standing, but needs repairs. In connection with my examination of your property, I thought it advisable to ascertain in what formatior *he silver was found, and the strike of the veins in that belt, i found the country that held the silver in the quartz, comrueuced in the vicinity of Silver Islet Mine, running ba* : of Thunder Cape, one rf *■^\■,i headlands of Thunder Bay, nearly due nprth until it approached th'-; water of the bay. Bearrig a little north easterly, it cuts the water of the Currant Kiver, and passes parallel with the Duncan Mine, about due east and west. Through the courtesy of Mr. Hill, the Secretary of the Silver Islet Mining Company, I gained very desirable inform- ation in regard to the country, &c. The lode of that company has been traced for one mile, or more, on the mainland, running through a break in the headland, and one shaft has been sunk to the depth of 70 feet, and very fair rock taken from it. It has been prospected, in other places, the entire distance of the tracings. The belt lies in the arc of a circle. The ledges in these different localities cut the country rock at a slight angle. The course of veins, is as near as I could judge about N. 40° W. or nearly N. W. and S. E. The country rock is granite, which is, I think, nothing more than a cap. Here, for a distance of 40 miles one way and 20 another, the country has been explored with fair results. 8 It is not in the history of mining, that such work, as is now being done on the north shore of Lake Superior, can last. I think a careful investigation would startle directors and stockholders. As a rule, I think there are but few men, in the capacity of superintendents, on tb ^ north shore, who are capa- ble of taking charge of a mine, and carry out every detail of the business, from its commencement, until the silver is turned out into bar. It seems to me, that managers only desire to turn out a few barrels of rich silver, and then their duty is done. So it goes on trom year to year, draining from their ci/mpanies large sums of money ; so long as their drafts are honoured, their minds are easy. Directors must share the result of this state of affairs, seeing that they confine their attention simply to the office work, thinking that their duty is done, when the last dollar is expended and accounted for. Of course, this business requires more attention than any other, when worked on a large scale. It is not expected that the superintendent's views are to b6 crossed, so far as regards the management of the business, but it gives more satisfaction to all concerned, when those, that are interested, shew their interest, by an inspection of the works, in which they have invested capital. " Silver Islet " is declared to be a good mine and the appearance of the colony warrants this assumption. To an experienced eye, however, there is great room for reform. By the courtesy of the manager of the mine, I was shown through it, and I saw blocks of ore torn off with the blasts, that were actually charged with silver plainly visible to the eye. The width of this ledge is eight feet. I had every oppor- tunity of observing the character of the ground gone through, to the depth of 450 feet. And, in this report, permit me to acknowledge the politeness of Mr. Hill and officers in charge of these works, towards myself, on the occasion of my visit. In this same belt of country, are other mines, that are not in operation, for the reason that the rock is not rich enough to ship to Wyandott for reduction, at the prices asked, vis:., •\ ■\ $100.00 per ton, freight $15.00 per ton, discount on bars, assay charges, express, &c. All these expenses amount to a large figure. Even Silver Islet cannot stand the pressure brought to bear on it, and, to ease itself, has issued bonds to the amount of $200,000, for the purpose of erecting a first- class mill, and furnaces on the spot to reduce their low-grade ore, of which they have a large quantity. I think, from the day this mill commences operations, a radical change will take place in the business. The larger portion of the mines in this district are in want of sufficient capital to enable them to be thoroughly opened and explored, and thus to facilitate the extraction of large quantities of ore. Add to this, that a want of system has characterised their management all over. Some of the mine owners seem to have worked solely with the object to extract a few tons of rich ore, for sale, in order to produce the necessaries of life, or to make sale of stock. Working the mines under great disadvantages, the results hf.ve been by no means as great as the districts could render. We should bear in mind that small lots of very rich ore, may build up, but will not sustain settlements. The low grade ore, which is the bulk of a mine's products, must be relied on, to maintain large and prosperous communities. When one witnesses this state of affairs, the prosperity of proprietors is evident. The time has now, undoubtedly, arrived, for utilizing these large bodies of ore, worth from $40 to $50 per ton, which have been hitherto wasted or neglected. The period of speculation has passed, and it is time that we should begin to understand our resources and husband them. In Thunder Bay and vicinity, in my opinion, there exist enormous quantities of these ores, which, so far, have been called worthless ; although in older countries they would be called very rich. I often hear people say, that are inter- ested in mines, " Our ore will go $500.00 per ton." These figures do not represent the average yield of the ore treated, still less the average value of the vein material ; nor would the true average mill yield give a direct measure of the gene- 10 ral quality of ore. A common error with miners has been, the habitual, though often innocent, exaggeration of the aver- age value of ores. People do not seem to know what this phrase means. At first, it used to mean the average result of a large number of sample assays ; and, since we have grown wiser, it means the average of pulp assays taken in the mill, and, beyond the latter signification, we have apparently not advanced. Now, any district can maintain a high average value, of this sort, as long as it sends only good ore to the mill or the furnace ; and the figures signify, not the average value of aU the ores in the vein, not even that of the ore extracted, but that of the ore treated. In other words, these figures are a criterion of milling and reduction, and nothing more. Moreover, since no mines ever did, or do, contain rich ore alone, only the high yield is generally associated with wasteful sorting, which further increases the expense of mining. Let him who would apply this test to a mine or a district, measure the excavations on the lodes, calculate the whole amount of vein matter removed, and compare this with the total of bullion produced. In the district, comprising Thunder Bay and neighbour- hood, this style of calculation would produce surprising re- sults. This country is no better, or no worse, than any other district in this respect. She is at this time working her best mines, and only her best. When in the progress of healthy and intelligent industry, more mines shall be opened, and existing mines worked on a larger scale, a more permanent system regulating things, less ore thrown away, or left standing as too poor to work, we shall see an apparent decrease, in the value per ton, of the contents of her veins. And I cannot wish her better fortune than this very decrease. I have yet to see systematic opening of ground, in the mines that I have visi- ted, with the exception of the " Silver Islet " Mine. Another station is about to be established beyoud their present lowest stoupings. In no other has a shaft been sunk in advance of their stoups, or have economical or advantageous methods of attacking the rock been employed, under such conditions. 11 The lock is hard, making the cost of sinking and stoping very considerable. Water is abundant, and its removal in- volves much expense. Veins may riot be uniformly produc- tive. All these qualities demand economy and a well organized and comprehensive system of management, as a first condition of permanent and successful mining. In the absence of this, profits are likely to be absorbed by the multi- plied cost of administration, when the lode is productive ; and where the lode becomes poor in any given portion, the work is liable to be abandoned by the parties that are most affected, and only resumed, when the neighbouring claims afford re- newed encouragement. The gains effected through the agency of new machinery, and other inventions, have amounted to over 50 per cent., on the average product of former years, and thus the outlook for the mines, on the Pacific coast, is incomparably better now than ever before, both as regards returns and accruing profits. To whatever quarter my attention has been directed, I find the condition of this industry flourishing, and the prospect flattering ; with every passing quarter of the year there is some important improvement to note, or gain to record. This busi- ness, while undergoing rapid expansion, is growing constantly safer ; the risk, incuiTcd in carrying it on, being every year less and less. Conducted with prudence, it is now about the most certain pursuit in which people can engage. Almost every day, some chronic trouble is overcome, some important invention announced, or some valuable discovery made. In every department of the business, science, system and economy are being introduced ; while a willingness to accept steady and moderate profits is superseding the former desire to realize immediate and inordin".!^ gains. Even prospecting is con- ducted with order and system. Engaging in any ordinary mining enterprise, needs involving no more risk now than embarking in manufacturing or farming ; and, as a general thing, scarcely so much. The mill will not answer the purpose it was intended for. The batteries will do, and that is about all. In the way of 12 machinery, you will require to have pans, settlers and agi- tators. The mill site will have to be changed to high ground, for convenience and economy. Another battery should be added, making in all thirteen stamps; the building, with some additions, will serve very well for that size of mill. I have no doubt the whole could be taken apart, and placed in position, inside of ninety days from the time timber would be on the ground. Water is a cheap and a good power. It will not answer in that climate, as the winters are so long and severe ; and at all times, both winter and summer, steam is required for heating the pulp, or sand, to a proper temperature. A steam engine would give the desired power and could work through- out the entire year, supplying every part of the mill with steam and heat sufficient to keep it from freezing up. There are many things lying about, that would be useful in reconstructing, such as battery, blocks, frame, pulleys, &c. I' think there are about 160 tons of quartz lying by the side of the mill. The road for hauling from the mine to the mill can be made a very good one by macadamizing, or a tram way could be built very cheap, as the route would be on a gentle decline, nearly the entire distance. The facilities that you have, compared with those of other companies that are staggering under enormous expenses for mining and milling their ore, give you every advantage over them. I have in my possession a statement of average yield of ore per ton of the ChoUar Potosi Mine, from June 1st, 1871, to May 31st, 1872. Ore extracted 37,789 tons. Ore milled 35,930 «« Average yield per ton |26.17 Orois yield of bullion $940,119.60 Extracting ore, repairs, dead work $6.57 Reduction , 12.16 $18.73 Average yield of ore 26.17 «« net yield of ore $7.44 Het reeeipU for year $271,173.67 13 Through the courtesy of Captain Nichols, the superin- V tendent of the " Shuniah " mine, I was shown every part of it. We descended the East shaft to the 80 feet level. ■ Following this, 340 feet to the West shaft, we came upon the old work, or where the silver was found in paying quantities and lost. A great deal of work had been done without accom- plishing the object sought, finding the pay streak. Under the administration of Captain Nichols, and owing to his energy it . has been found. All work that had been done heretofore had been North. He drove South a cross cut. West of the centre shaft, a short distance, and found the pay in about 20 feet, 4 feet wide, from this point he rose to the 60 feet level and opened up a level on the same streak, exposing some of the richest ore I ever had the pleasure of seeing. On the 24th he broke into the vein in its full width, showing native silver, sulphates, &c., a beautiful sight indeed. The old working shaft is down 166 feet, but is at present filled with water up to the 80 feet level, and, as the company has only allowed him a certain amount, per month, to operate with, his work has at all times been limited. With this discovery, and the character of the ore, I look upon it as a fine property. The vein was filled by a " horse " making its appearance where the pay was lost- How far it extends East has not been shown. With their showing, this company could well afford expensive reduction works and means, to put their mine in splendid working con- dition. Owing to some unaccountable reason, they have sus- pended operations ; that order arriving on the 28 th of Oct. I do not know but that it is better for them to have done so, as the force of men was small and the whole affair without life, for such a splendid prospect. With them, as with others, the cry is the want of reduction works. Tons upon tons, of low grade ore, that will not pay the present prices asked for reduction, are thrown aside. Nothing but the native silver or the pure sulphates will answer. If I understood the superintendent correctly, he informed me that 3 barrels of ore, as rich as had ever been shipped, had been taken out in the last two days, with but two men in the face of the drift-'HSUch work as this is almost unparalleled. 14 Ore that will not yield at the rate of $300.00 per ton is looked upon as worthless, at the present prices of millin- More valuable discoveries have been made during the summer, among them, in McKeUer and Pie Islands. The veins on these Islands are of sufficient width to afford any amount of ore for miUing purposes. I think I never in my life saw such samples, as were shown me, from the many locations in that vicmity. Thompson's and Jarvis Island, and the Jimpire mme, are looking well, from reports of those that I questioned, and who were working in these mines. The announcement of the departure of the steamer brought my labors to a close much sooner than I would have wished, as I would have much liked to have made my exam- ination more thorough, it being in my opinion one of the best helds for operating in I have seen for some time. With the desire to see your property in operation, and with profit to your Company, I have the honor to be. Gentlemen, Your obedient servant, ALEXANDER STEWART, Mining Injector,